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COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2014 results October 20, 2014.

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Presentation on theme: "COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2014 results October 20, 2014."— Presentation transcript:

1 COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2014 results October 20, 2014

2 COMMITTED TO SUSTAINABLE PRODUCTIVITY We stand by our responsibilities towards our customers, towards the environment and the people around us. We make performance stand the test of time. This is what we call – Sustainable Productivity. October 20, 2014 Atlas Copco - Q3 results 2014 2

3 Q3 IN BRIEF  Improved industrial demand –Order growth for industrial tools and small industrial compressors –Strong quarter for vacuum solutions  Unchanged demand for mining equipment  The service business continued to develop well  Strong North America, weak Asia  Record revenues and strong operating cash flow October 20, 2014 Atlas Copco - Q3 results 2014 3

4 Q3 FIGURES IN SUMMARY  Orders received increased by 20% to MSEK 23 395, organic growth of 2%  Revenues were MSEK 23 590, organic decline of 2%  Adjusted operating profit was MSEK 4 604 (4 214) –Reported operating profit was MSEK 4 145 (4 212) –Impairment of assets, restructuring costs and other items affecting comparability was MSEK -459 (-2)  Adjusted operating margin at 19.5% (20.5) –Reported operating margin 17.6% (20.5)  Profit before tax at MSEK 3 879 (4 017)  Basic earnings per share SEK 2.37 (2.52)  Operating cash flow at MSEK 3 915 (2 394) October 20, 2014 Atlas Copco - Q3 results 2014 4

5 10-2+1 Excl. Edwards -20 9+9+18 Excl. Edwards +8+18 31+9+11 Excl. Edwards +1+5 24+14+12 Excl. Edwards -6-8 4+6+4 Excl. Edwards +5+2 22+27+33 Excl. Edwards +10+15 ORDERS RECEIVED - LOCAL CURRENCY October 20, 2014 Atlas Copco - Q3 results 2014 5 September 2014 A =Share of orders received, year-to-date, % B =Year-to-date vs. previous year, % C =Last 3 months vs. previous year, % 100+12+15 Excl. Edwards +2+4 ABC

6 ORGANIC* ORDER GROWTH PER QUARTER Atlas Copco Group, continuing operations October 20, 2014 Atlas Copco - Q3 results 2014 6 * Volume and price

7 ATLAS COPCO GROUP – SALES BRIDGE October 20, 2014 Atlas Copco - Q3 results 2014 7

8 ATLAS COPCO GROUP October 20, 2014 Atlas Copco - Q3 results 2014 8 12% 29% 16% 43% January - September 2014

9 COMPRESSOR TECHNIQUE  Record quarter with robust demand for small machines and service –Soft demand for larger machines  A strong quarter for Edwards vacuum solutions  Acquisition of compressor distributor in New Zealand  Adjusted operating margin at 22.7% (23.4) –Consolidation of manufacturing in the U.S., MSEK -60 October 20, 2014 Atlas Copco - Q3 results 2014 9 Organic revenue growth has not been restated for 2012 and 2013 following the move of Specialty Rental from Compressor Technique to Construction Technique Oil-injected rotary screw compressors with many energy savings features

10 INDUSTRIAL TECHNIQUE  Record quarter with solid organic order growth in all businesses and in all major regions –The best development geographically in Asia  Acquisition of Henrob –A market leader in self-pierce riveting  Operating margin at 22.5% (23.0) October 20, 2014 Atlas Copco - Q3 results 2014 10 Self-pierce riveting tool

11 MINING AND ROCK EXCAVATION TECHNIQUE  Unchanged demand for mining equipment –Higher order intake in North and South America, lower in Asia and Africa/Middle East  Sequential growth for service and stable orders for consumables  Impairment of assets and restructuring costs of MSEK -340 (-50) –Adjusted operating margin at 18.5% (20.8) October 20, 2014 Atlas Copco - Q3 results 2014 11 A hydraulic handheld rock-drill system with outstanding drill rate and considerable energy efficiency

12 CONSTRUCTION TECHNIQUE  Order intake decreased somewhat –Growth for road construction equipment and for construction and demolition tools –Low orders for large portable compressors –Low demand in BRIC  Good development for specialty rental  Operating margin at 11.4% (13.0), negatively impacted by product mix  Andrew Walker appointed business area president October 20, 2014 Atlas Copco - Q3 results 2014 12 Organic revenue growth has not been restated for 2012 and 2013 following the move of Specialty Rental from Compressor Technique to Construction Technique A reversible plate with a compaction indicator, which reduces the risk of over- or under-compaction.

13 GROUP TOTAL July – September 2014 vs. 2013 October 20, 2014 Atlas Copco - Q3 results 2014 13

14 PROFIT BRIDGE July – September 2014 vs. 2013 October 20, 2014 Atlas Copco - Q3 results 2014 14

15 PROFIT BRIDGE – BY BUSINESS AREA July – September 2014 vs. 2013 October 20, 2014 Atlas Copco - Q3 results 2014 15

16 BALANCE SHEET October 20, 2014 Atlas Copco - Q3 results 2014 16

17 CASH FLOW October 20, 2014 Atlas Copco - Q3 results 2014 17

18 NEAR-TERM OUTLOOK The overall demand for the Group’s equipment and service is expected to increase somewhat. October 20, 2014 Atlas Copco - Q3 results 2014 18

19 COMMITTED TO SUSTAINABLE PRODUCTIVITY. October 20, 2014 Atlas Copco - Q3 results 2014 19

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